Bausch Health declines; Transocean gains as oil prices drop; Community Health softens

By Cristal Cody

Tupelo, Miss., Aug. 1 – Bausch Health Cos. Inc.’s bonds declined about 1 point to over 3 points on Monday as one of the most active distressed names seen in the first session of August.

Bausch Health’s 5% senior notes due 2028 (Caa2/CCC/B) dropped 1 5/8 points to 52 1/8 bid on strong trading supply totaling $11 million, a source said.

The secondary action followed a downgrade from S&P Global Ratings.

Transocean Inc.’s bonds rallied over 2 points to more than 5 points on Monday as oil prices slid nearly $5 a barrel.

The company’s 6.8% senior notes due 2038 (C/CCC-) rallied 5½ points to 51½ bid, a source said.

Secondary volume totaled $1 million.

Meanwhile, S&P U.S. High Yield Corporate Distressed Bond index total returns ended July at 2.53%, well up from June’s total returns of minus 9.49%.

Moody’s Investors Service said in a news released on Monday that the number of defaults is expected to increase with the U.S. default rate projected to rise to 4.2%.

In other secondary action Monday, Community Health Systems Inc.’s 6 7/8% senior secured second-lien notes due 2029 (Caa2/CCC/CCC) dropped 5½ points on mostly light supply totaling $1 million, a source said.

The bonds were quoted at 50½ bid.

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